Monday, November 09, 2009

Idiocranomics: First Time Homebuyer Credit Extended and Expanded

Not content with creating one housing bubble, our congressmen and women are doing their best (along with the Fed) to create another, passing an extension and expansion of the First Time Homebuyers Credit. This is bad policy and will only make things worse in the end. While it may seem like a gift to those who are buying homes now, it is part of a broader bank bailout and will only prop up housing temporarily. Of course the the massive fraud that has been perpetrated by those taking the tax credit who are ineligible didn't stop Democrats and Republicans from doing what is right by the American people - which would have been to end the credit.

Scott Dauenhauer CFP, MSFP, AIF